1. Ajay Shah has a nice posting on India’s currency market. In shirt, it is highly inefficient with a rampant illegal market.
2. One of my favorite economists Hal Varian has joined Google as a Chief Economist. WSJ Blog points out to a super interview of Varian.
3. WSJ Blog points out to a paper by Raghu Rajan et al which says Aid does not cause growth. The paper was written few months ago and is recently being covered in media and blogs (see for instance blog posts from Dani Rodrik, Greg Mankiw; all seem to be discussing this). I am expecting a few fireworks from aid supporters especially Jeff Sachs.
4. TCA Srinivasa in his Friday column in BS points out to a new paper on corporate pay system in India.
5. BS has an excellent interview of Bimal Jalan, former RBI Governor. He says Financial Crisis are different because of couple of reasons:
In a financial system the real crisis occurs within a very short period — before you know it, you are gone. You don’t realise it and do not get enough time to prepare. All other crises take time to pan out. The key thing that I want to emphasise about a financial system crisis as was witnessed in east Asia is the short time duration in which it happens.
The second point, which is also important, is the contagion effect.
The third thing, unfortunately for policymakers, is that the crisis may already be there before they know it!
6. Ravimohan has written a decent article in BS on current market developments.